In today's fast-paced world, new laws and technologies come along that can change the way a...
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In today's fast-paced world, new laws and technologies come along that can change the way a business operates and its costs structure. Recently, Valley Farms restaurant's costs went up because of a new higher minimum wage in their area. They decide to raise their average meal ticket price, from $14-16, to cover the higher cost. Their variable costs are 60% of the selling price, and their fixed costs are $10,000 per month. • Discuss the cost-volume-profit relationships restaurants should consider before raising their prices. • Share some of the non-monetary factors to consider before raising a selling price. . In today's fast-paced world, new laws and technologies come along that can change the way a business operates and its costs structure. Recently, Valley Farms restaurant's costs went up because of a new higher minimum wage in their area. They decide to raise their average meal ticket price, from $14-16, to cover the higher cost. Their variable costs are 60% of the selling price, and their fixed costs are $10,000 per month. • Discuss the cost-volume-profit relationships restaurants should consider before raising their prices. • Share some of the non-monetary factors to consider before raising a selling price. .
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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